We have put together this simple guide to starting your waterpark. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas.
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
Luckily we have done a lot of this research for you.
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Waterpark Name Generator
If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name, we recommend researching your business name by checking:
It's very important to secure your domain name before someone else does.
Business Name Generator
Costs associated with taking on such an endeavor will depend largely on your short and long-term goals for the park. Your first, and most important investment, will be in land. When choosing your location, carefully research the areas you’re considering. Choose a well-populated areas, centrally located for easy customer access. If your vision is to operate a large tourist attraction, choose a city with an airport. Visitors arriving from other states, cities, and countries will be ready to start their experience. If they have to travel several additional hours to get to their final destination, they may decide to make other plans. Experienced waterpark owners recommend purchasing between 8 and 15 acres of land, depending upon what type of waterpark you plan to build:
Once you’ve purchased the land, meet with an experienced consultant and contractor to begin the planning process.
Construction costs will vary depending upon how large of a facility you wish to build and where in the country you’re building, but average between $250 and $600 per square foot. Reports indicate an indoor park with 2720 square feet would set you back almost $690,000. Included in these costs are: building, HVAC, pools, mechanical, snack bar, supporting areas, theming, and waterslides and recreation equipment. For the same construction services, a 9450 square foot indoor park would run close to $2.5 million, averaging $273 per square foot. Owners of exclusively outdoor park report startup costs of approximately $1.5 million.
Do not let these numbers discourage you. To save on costs, many park owners purchase enough land to fulfill their vision, but start out with the essentials that fit into their budget. As business picks up, they invest a portion of their profit back into the business, adding attractions over time. In addition to saving your startup budget, this also helps retain customers. Families are excited to return, as they're anxious to see what’s new. They start to feel as though they’re part of the process and will develop a loyalty that is unmatchable.
It’s difficult to quantify a park’s ongoing expenses, as there are a number of factors that directly influence these numbers. The following are items you should include in your monthly budget:
Maintenance of attractions, facility, and equipment - a preventative and predictive maintenance program can save you tens of thousands of dollars.
Utilities and chemicals -this, combined with maintenance, averages approximately 8-12% of your operational costs.
Construction of new attractions
Operational supplies - 3-5% of your budget
Cleaning
Ongoing training for staff
Insurance
Payroll - personnel costs will comprise 50-80% of your operational budget, depending upon the size, hours of operations, and staffing levels required to maintain a safe customer experience.
Many parks cater to the needs of customers spanning every age group. For some, tourists encompass a large portion of their customer base. For others, local families, teens, and young adults are the focus of their marketing efforts.
Waterparks charge an admission for each visitor that enters. Many offer additional activities and services--like food and equipment rentals--which improve visitor satisfaction and profit potential.
Some parks charge a flat admission fee, regardless of age (2 and under free) while others offer special pricing depending upon age or height. If you have quite a few rides whose height requirements would exclude a large group of customers, consider doing the latter. Some parks charge an across the board average $43 per person. Pricing based on age/height is approximately: 48" and taller - $35, under 48” - $27, senior and military - $17. Fees include admission into the park and unlimited water slide rides. Customers are charged extra for additional services and attractions.
This industry has realized significant growth over the last decade and is expected to continue at approximately 3.5% annually. While there are is no published information regarding a water park’s potential profit, research does indicate that over 375 million guests visit these establishments in the United States each year. With a meticulous operational strategy in place, your park can earn a piece of this multi-billion dollar industry’s profits.
Many parks expand their goods and services to include more than just water slides/rides. To make your business more profitable, consider implementing some of these strategies:
Make it a true vacation destination by building a hotel as part of the water park.
For a nominal fee, allow local businesses to display signage in the parking lot and throughout the park.
From the onset, invest in water recycling and energy efficiency programs. Your initial costs will be greater, but you’ll save a significant amount of money over time.
Offer group rates, state resident discounts, and annual passes
Include extra services for an additional fee - cabanas, lockers, souvenirs, food, and private party rooms.
Provide additional entertainment, such as mini-golf, go-carts, climbing walls, bumper boats, and a gaming and redemption center.
Offer retail space for tenants to lease. This will help reduce your overhead expenses as you support other businesses within the community.
Host special events during your “off” season. Many parks build haunted houses during Halloween, drawing a significant number of guests each day.
Rather than building a concrete park, make Mother Nature your park. Entrepreneurs have found success opening establishments like Bob’s River Place, where visitors can float on rafts, rope swing, slide, jump in platform, log roll, water volleyball, grill, and picnic. Startup and ongoing expenses will be a fraction of the cost, as you use natural resources to your advantage.
Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!
The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your waterpark is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Have a Professional Service Form your LLC for You
Two such reliable services:
($29 + State Fees)
($249 + State Fees)
You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Besides being a requirement when applying for business loans, opening a business bank account:
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Getting a business credit card helps you:
Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Certain state permits and licenses may be needed to operate a waterpark. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
A waterpark is generally run out of a large outdoor or indoor space. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
FInd out what types of insurance your Waterpark needs and how much it will cost you by reading our guide Business Insurance for Waterpark.
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
As with any business “growing up” in these technological times, it’s critical that you maintain an online presence. This is a great tool for keeping current and future customers informed of the latest news, exclusive deals, and special events. Ads in local and surrounding area newspapers, radio, and television are also a great way to get the park’s name recognized in the community. If your goal is to attract tourists, develop relationships with travel agents and hotel management, as they’re often the ones helping families plan their vacation. Additionally, most state welcome centers have an area dedicated to local attractions; leave pamphlets for visitors passing through. Be sure to list your park in the World Waterpark Association’s Directory, which should help reach customers you might not normally come in contact with.
Every successful entrepreneur knows that word of mouth can be your best friend or your worst enemy. Work to establish a positive reputation for the park by offering a safe, clean, and fun retreat for your customers. If someone expresses disappointment, do everything in your power to turn their bad experience into a good one. This level of service ensures your customers will keep coming back and will, hopefully, bring all their friends.
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.
Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
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Entrepreneurs with previous small business ownership or management would be best suited for this business venture. Innovators who enjoy a fast-paced atmosphere and are dedicated to reinvesting a portion of their profits can turn a small waterpark into a million dollar enterprise in a matter of years.
Take our Entrepreneurship Quiz to find out!
Entrepreneurship Quiz
When introducing your waterpark, you’ll want to take an active role in most aspects of the business. Your park will be frequented by customers of all ages - safety should be the top priority at all times. As you gain a better understanding of the intricacies of running a business of this magnitude, you can start building an experienced and knowledgeable management team to relieve you of some of your duties. Most days you’ll either perform the following duties, or delegate them to a valued team member:
Before opening your business, draft a business plan that outlines your vision for the park. Consider how large of a role you wish to take in running the business, as well as your growth goals for the park.
Owning a water park requires a high level of business finesse and leadership skills. Everyone you surround yourself with, from park builders to management and staff, will be instrumental in defining success. Therefore, it’s critical for you to be adept at identifying and employing individuals whose intentions align with the company’s mission.
While knowledge of business and/or hospitality management would prove beneficial, prior experience in customer service is invaluable to your business’ success. Leaders must be skilled in communicating with and motivating staff, and should be decisive and resourceful in making business decisions. This industry demands constant innovation. Thus, many park owners have prior experience in design, often viewing the park’s attractions as a form of art.
Those considering entering this industry are urged to gain firsthand experience. This will offer invaluable insight into who your target audience is and what they’re looking for in a waterpark experience. Additionally, membership with the World Waterpark Association would prove beneficial. Members have access to educational resources, annual symposiums, suppliers, and much more.
While a majority of U.S. waterparks start out small, many entrepreneurs are now realizing the profit potential behind consistent park expansion. Those offering customers a well-rounded experience are able to attract visitors from all over the world. Over the last five years, park owners have expanded their business strategy to encompass international markets. Regions such as Asia are virtually untapped, while the demand is high. Assuming the park is well-managed and maintained, business owners have the potential to realize long-term growth and success, regardless of how modest or grandiose their vision for the park is.
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One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
The following are some tips from successful waterpark owners:
Unlike other small businesses, you will not be able to operate the water park alone. Start the hiring process several months before opening day. Safety is your top priority; invest in your team by offering them quality training on safety standards, CPR, and standard operational practices. Since customers will often be children and teenagers, many parks strategically employ high school and college students, as they’re more easily relatable.
Your entire team will consist of several subsets, including:
For more information how to open a water park, please get in touch with us!